Westpac Banking Corporation Ltd has increased its fixed interest rate on a two-year loan, in a move that has fuelled speculation the lender is expecting an end to the Reserve Bank of Australia’s monetary easing cycle.
In February, Westpac reduced its rate on a two-year fixed-term home loan to 4.99 per cent per annum, but has today increased that to 5.19 per cent per annum.
The move is the first increase to a fixed home loan rate by a major lender in almost two years.
Loan Market spokesman Paul Smith said after nearly two years of downward movement on fixed interest rate home loans, it was now likely other lender’s would follow Westpac’s move.
Bill Evans of Westpac is still calling a June cut this looks to me more like pulling the bank back from its uber low 4.99% special, not any acknowledgement of higher rates to come..